Dome is frontrunner in bid to be UK's first supercasino

The Millennium Dome has been designated the frontrunner in the race to become Britain's first Las Vegas-style supercasino, reviving controversy over John Prescott's relationship with American tycoon Philip Anschutz.

Eight venues are competing to win one licence to open the sole supercasino in the country. Yesterday the official body responsible for awarding the licence by the end of the year disclosed that Mr Anschutz's bid to open a massive casino at the dome in Greenwich, south London, is in pole position at the moment. The Casino Advisory Panel evaluated the eight bidders by awarding points based on a set of criteria. Greenwich got 67, ahead of Glasgow (66) and Blackpool (65).

The announcement sparked fresh accusations from the Tories who claim that the deputy prime minister has given special favours to Mr Anschutz to help him land the licence. Hugo Swire, the Tories' culture spokesman, said the "close relationship" between the deputy prime minister and Mr Anschutz has "compromised the whole bidding process".

Mr Swire said: "Greenwich are in the unenviable position where if they are successful, their competitors will cry foul because of the unprecedented access to the government enjoyed by the dome's owners. Clearly, the conflict of interest that has arisen because of John Prescott and his relationship with Mr Anschutz appears to undermine the fairness of the bidding process. As a result of Mr Prescott's actions the government risks being mired in legal challenges for years to come."

Last night a spokeswoman for Mr Prescott rejected the Tories' accusations: "The deputy prime minister has had no involvement in casinos or the bidding process. The Casino Advisory Panel is completely independent of government."

Mr Prescott continues to be the target of sleaze allegations shortly before he is due to deputise for the prime minister as Tony Blair goes off for his August holiday. Mr Prescott has been under pressure over his relationship with Mr Anschutz since it emerged last month that he visited Mr Anschutz's ranch in Colorado for a weekend last July.

Mr Anschutz bought the dome site from the government in 2002 and is seeking to redevelop it into an entertainment complex. The American billionaire will make far more money if he wins the one licence from the Casino Advisory Panel to open a supercasino there.

Mr Prescott has denied discussing the casino bid during the ranch stay or six other meetings he had with Mr Anschutz over the last four years. Mr Prescott says the meetings were legitimate since he was responsible for the overall regeneration of the Greenwich area.